AI, capital flows, and a wave of new regulation are making waves in Canada’s technology sector. McCarthy Tétrault's Technology Group pulled the key threads together in its latest Technology Perspectives publication.
The report offers a practical read on where legal risk and opportunity are concentrating. On the investment side, it finds a highly selective venture market, with capital clustering around AI and a fast-expanding defence and security technology space, while cleantech faces a more cautious mood and fundraising leans on follow-ons, secondaries and M&A.
It also examines why more Canadian corporates are investing directly in startups through corporate venture capital — and the control, information-exposure and reputational risks that come with it. Digital infrastructure gets its own treatment, with data centres, fibre and wireless buildouts drawing momentum from AI demand, cloud growth and public-sector funding.
Much of the publication focuses on Canada's shifting regulatory perimeter. It walks through the move toward legislated open banking under the Consumer-Driven Banking Act, the Bank of Canada registration regime for stablecoin issuers, and an increasingly layered payments landscape now that the Retail Payment Activities Act is in force and Real-Time Rail advances.
On privacy and cybersecurity, it flags sharper regulator expectations around consent, biometric data and scraping, alongside the cybersecurity obligations contemplated by Bill C-8. A chapter on AI litigation maps the disputes companies are most likely to face — from copyright class actions over model training to product-liability and algorithmic-pricing claims — and the report closes with practical guidance on why technology projects succeed or fail based on early decisions about scope, timelines and governance.
To delve deeper into the developments worth watching and the controls worth strengthening now, download the full Technology Outlook report.
***
McCarthy Tétrault’s Technology practice is the largest and deepest in any Canadian law firm. Operating at the intersection of the legal, business and technology sectors, our team of skilled advisors help clients establish and maintain their competitive advantage. Amongst Canadian law firms, we’ve advised on the widest range of leading-edge technology transactions across industry sectors: software, hardware, e-commerce, fintech, aeronautics, biotechnology, life sciences, IT services, data management and security. Our internationally-recognized team acts for domestic and international clients including large and small technology developers, manufacturers and vendors to the major corporations, financial institutions and private/public partnerships that use and distribute technology or purchase enterprise-wide licensing agreements and mission-critical systems. Find out how our team can help you.